(06-30-2022 09:39 PM)Hallcity Wrote: It’s never been clear to me the extent to which the ACC’s revenue problems are due to terrible TV contracts and to what extent the problems are structural.
If the ACC could put its media contracts up for bids today, what could the ACC expect to get? Will the ACC be competitive when it can finally get out from under its lousy TV contracts? Can we wait this out, as hard as that now seems?
I have provided some information on this regard in other threads.
The ACC's problems are mostly structural, and that is what drives the terrible contracts.
The ACC is the smallest schools of the P5 with average enrollment s of around 27k students. Compare that to the SEC and BIG 10 with average enrollments closer to 45k-50k students. Assuming these numbers are reasonably proportional to the relative sizes of fanbases and the ACC will always be valued 30 to 50 % less than the SEC and BIG. Based on enrollment alone the ACC should be last in the money. By the way, this would directly apply to those of you who think streaming games will be a savior. Half of the ACCs schools would take severe revenue hits if games go to a pay per view streaming model.
This problem can only be solved by some schools drastically increasing their enrollments or adding large schools. Think UCF, Houston, Cincinnati, Oregon, UW, basically schools with minimum enrollments of 40+k.
These numbers are important because TV contracts chase eyeballs. The enrollments can be seen as proxies for the inelastic demand to watch a particular school. Elastic demand only exists for schools performing well and can vanish once the good times end. These enrollments also factor into alumni giving. Statefan has provided excellent analysis in other threads on how school endowment size can be used as a proxy for school capability to buy program success, as well as soft power advertising for bringing in talent. I think the only schools with massive endowments are unc, duke, and Miami, but I would need to conduct more research to confirm.
The next structural problem the ACC faces is reactionary leadership that failed to learn from the Big East. The leaderships at various schools have not aligned their athletic visions with each other under the ACC. The SEC and BIG moved first to the football first model and are reaping the benefits. Too many ACC schools have split visions either wanting basketball first (uva, unc, duke, su?), football first (cu, fsu, Miami), or naively assuming they can balance the two (NC state, gt, VT, ul). These split visions prevent a cohesive league and we can see the results in relatively uncompetitive nature of ACC sports being dominated by a few teams that are all in on their desired sports.
While the ACC did have the largest market reach of the conference extending from Miami to Boston. The latest move by the BIG will have nullified that advantage. Not that the ACC made much use of it.
Because of these structural disadvantages, and poor leadership judgement favoring nepotistic regional contracts. The ACC is now on it death clock represented by the GoR. It will likely implode as Schools have no cohesive vision, which will drive them to chase their own desired ends.
By the way, chickens may have finally come home to roost for ND. The BIG's expansion, may have effectively erased any benefit ND would have brought to it's conference and taken away one if it's primary west coast rivals. ND can now only look to ESPN and SEC if it wants to be apart of where big brand CFP is going.